What should I know about Investing in deeds of trust?November 7, 2014
How to Make Money by Investing in Deeds of TrustNovember 17, 2014
What should I research before I start investing in deeds of trust?
It is very helpful to be familiar with some of the terminology and steps that are associated with investing in deeds of trust. You should understand market value, the equity in the property, and the security of the loan. You are dealing with these things throughout the whole process, so a thorough knowledge is key. Also, it is vital that you take time to research the borrower. Check their financial standing and credit. Do not forget to do the same with the Mortgage Loan Broker. You want to know how much knowledge, experience and integrity they have before going into a business transactions with them. Know about the escrow process from the funding of the loan or purchasing notes. It may help to have someone you trust go through the documents that describe, evidence, and secure the loan. Also, before you even start, it would be helpful to know what to do if the borrower fails to pay. Have a plan in place, and know what your next step would be.
What are the profits that come with investing in deeds of trust? How can I benefit from this kind of investment?
What will my return be?
We talked a lot about the risks, but let me tell you about the attractive side of investing in deeds of trust! If done properly, most trust deed investments have a pretty appealing yield with mostly low risk. Those that choose to begin investing in deeds of trust usually receive high single digit annual returns that are paid by the month. Some investors even receive over 10%! The amount you receive is much more favorable than other options with similar risks.
Even when you consider all the risks, there is something that you can do to mitigate them, making investing in deeds of trust a pretty sound option with the chance of high rates of return!
23335 N 18th Drive Site 120